It’s one of the most common objections you’ll get … and one of the most difficult to deal with.

You’ve Heard It Before:

Objections come in different sizes and shapes which makes objection handling a difficult skill to master. You will get different objections when prospecting than you will when presenting solutions and you need to be able to handle the common ones in a smooth and skillful manner. A tough objection when attempting to set meetings is the dreaded, “We’re happy with our current vendor” which might also come in the form of “We’re good right now” or even “We don’t have any need.” In this article, I’m going to provide you a 3 step process for handling these.

Let’s be clear. There may actually NOT be any need. They might actually have a solution in place that is superior to anything else out there. While these situations MAY exist, they are rare. The sad fact is that in many cases, your solution IS better but you never got the chance to find out for sure. Objection handling is often a case of additional communication of the facts.

It’s a problem that is often precipitated by poor sales techniques. Why does this happen? In a nutshell it’s caused by the prospect not believing they have any problems with their current solution vendor that warrants attention. Logically, if they knowingly had a problem with their current vendor, they’d probably be calling you instead of you calling them!

In a recent workshop, I asked this question: “Who believes that there are potential customers out there who have problems that you can solve but that the customer doesn’t even know they have?” As you might expect, every person in the room threw their hand up. They are 100% right.

Find Problems:

The overall strategy here is to find some problems. If there is no problem, there is no opportunity. Sometimes I get pushback from people on the use of the word “problem” noting that their product or service provides an “opportunity” for the customer to do better than they are right now rather than there being a “problem” necessarily. While I don’t disagree, we’re really just looking at the same coin from a different side.

Northbound’s sales development program is named “Goal Aligned Selling™” because our entire methodology revolves around helping the customer achieve their goals. When a customer perceives a gap between where they are and where they’d like to be, “tension for change” is created. Only when this tension for change exists, will the customer be motivated to explore a possible change to the status quo. The diagram above illustrates the concept.

Naturally, a very direct way of course is to just ask the buyer what problems they have. You could come right out and say something to the effect of this.

You: “So, what problems do you have with your existing vendor?”

It’s not likely, however, that the customer is going to a) know all the problems they have or b) serve them up to you on a silver platter. Instead you’ll hear something like this:

Customer: I really don’t have any. Thanks for your call.

A better way to approach this is to use this 3 step strategy:

1. Establish what the customer is trying to accomplish in the key result areas.

2. Probe for areas where there might not be 100% satisfaction.

3. Help them see that they might be able to do better in the key result areas than they are right now.

Executing this strategy can be quite challenging and requires more detail than I have for this post. I will follow this up shortly with some specific ways of implementing this strategy with your prospect.

This great article from Fast Company discusses how sales training delivered by the right means, is critical in getting your sales team performing exceptionally.

Although Fast Company is one of my favourite reads, it doesn’t often have articles focused around business sales so when I see one, I usually jump on it. This one hits on many important criteria to raise a sales team’s effectiveness through engagement and more specifically, through sales training. Some of the writer’s points that strike me are:

Great training can help prevent boredom.

Make it ongoing rather than something on your checklist.

Build acquiring new selling skills into an internal competition or at least make it increase someone’s status.

Make training convenient through remote learning in bite-sized pieces.

Use a blended approach of online (including virtual classroom) and live classroom training.

Sales training can be an investment for your sales team with an extremely high return-on-investement but only if it’s done properly by using some of the ideas in the Fast Company article. Read the full article here.

I’d be happy to have a casual discussion of how Northbound can make your team perform better. Contact me @ 416.456.1440 or macron@northboundsales.com.

Dealing with a discount request while maintaining profit margins and closing the sales requires delicate balance.

By Michael Caron, President, Northbound Sales

Despite your best attempts to sell value and remain firm on your price, some clients will press
ahead with their request for a discount. After a solid attempt from you to reassure them that your price is fair, if your prospect is still pushing for a discount, you have a choice. Walk away from the business because you want to maintain your price or slowly start to give concessions in an attempt to win (or save) the business.

If you want to give concessions, following a simple system will ensure a profitable negotiation.

Your First Step
The first step, always, is to find something else to give up that doesn’t reduce your price. Free shipping. Extra manuals or training. A client profile on your Web site. What you choose will be specific to your business, your markets and your client base. The key is to have the list of things you’re willing to offer prepared in advance, so you can draw on it during the negotiation.
It’s hard to think creatively in the heat of a negotiation, so planning ahead can give you a ready-made solution that leaves both you and the client feeling satisfied with the transaction.
Your goal is to maintain the price integrity of your product while delivering extra value to the customer with a service that does not cost you anything (or very little). For example, if the customer asks you for a discount consider offering them following instead:
1. An unconditional money back guarantee
2. Free shipping
3. Payment terms
4. Payment with credit card
5. Free training CD’s or in house training by you on the product
6. Access to a public seminar or trade show your company is sponsoring
7. Free set up (if you are a printer/embroidery/promotional products company)
8. Future discounts based on volume: the company will pay full price today and receive a discount on a future order. You can also do this as a gift certificate for them to use later.
9. Free electronic copies or hard copies of your help /training manuals
10. Upgraded support levels
11. Participation on your client advisory board or panel

About half the time, your customer will take you up on the offer to provide a “non monetary concession.” The other half will continue pressing for a price discount because in today’s
marketplace it has become all too common for one supplier to attempt to trump all others by lowering their price. In many cases, your clients are being trained by the competition and other vendors to demand lower pricing from you. It’s a short term strategy, and it does little to benefit buyers but that doesn’t make it any easier to assure prospects they’ll get equal or better ROI by paying more.

Sometimes, a prospect just wants you to lower your price, and you (with your company’s support) will need to consider doing it.

Your Second Step
If you feel you have to give up a discount in order to close the sale, do yourself a huge favor and always ask them one of the two following questions first: “What is important to you about an x% discount?” or “Why is an x% discount important to you?”

These questions will flush out any last details that could help you find a different way to structure the terms and pricing. This allows you to keep your price while letting the customer walk away with their needs met as well. If, however, you ultimately do have to reduce your price, make sure to follow these two rules:

Never reduce your price without getting something in return. Getting something in exchange for a pricing concession is key to managing customer expectations that future discounts will not be easily dished out. As with the “no money” concessions above, what you get in return for a price reduction will be unique to your business and markets. It could include references or case studies, a bigger order, introductions to senior level executives or cash up front, etc… Again, whatever you ask for, prepare the list in advance so you can respond quickly and
smoothly.

Your Third Step

Nothing is worse than coming to an agreement on price (especially a reduced price!) only to find out that your prospect is still looking for other concessions. Be sure to get a firm verbal agreement from the customer that this discount is all they will need to get the deal done. Try asking them something like “I’m not sure if I can get you this price, but if I can, is it fair to say that we can go ahead?” or “I’m not sure I can get this discount for you. If I can, though, are you willing to ….?”

By asking them this last question, you can ensure you get
all the issues on the table first, giving you the chance to deal with them fairly once and for all. So what goes after the “willing to”…. in that question? I believe that if you must, absolutely must reduce your price to win the business NEVER let that price drop without getting something in return.

Try some of these best practice ideas for finishing the question… “I’m not sure I can get this discount for you. If I can, though, are you willing to ….?
1. place your order today?
2. provide full payment up front?
3. place a larger order?
4. provide me 3 qualified referrals / introductions?
5. give us a testimonial or case study?
6. allow us to sponsor the event you are organizing?
7. invite me to the event you are having for their clients?
8. provide me space in your newsletter for a monthly column?
9. provide my company an exclusive purchasing arrangement?
10. introduce me to additional departments or internal decision makers?
11. have us in for a “lunch and learn session” with your staff ?

This step is easy to do if you have conviction. The first step to finding better clients – ones that focus on value and not price – is making sure you are 100% confident that you are delivering such a high value to the marketplace. Confident that all buyers will want to own it at full cost. When you do believe this, you will not have any trouble asking for something valuable in return for your price discount.

Remember that what you ask for does not have too be of equal monetary value. In fact it can be free for the customer to provide as long as it has value for you. The goal is to employ reciprocity – you will gladly scratch the customers back as long as they are willing to scratch yours! Creating equality in your client relationships ensures that you will have a long lasting
trust based relationship which reduces the amount of “shopping” the customer does each time they need to order. This increases your profits, decreases your sales cycle and encourages referrals.

You and your team can learn to produce stronger relationships and more equitable and profitable business interactions with Northbound’s “Win/Win Negotiations” workshop. For more information or pricing, contact Michael Caron at mcaron@northboundsales.com, 416.456.1440

We define a win/win negotiation, as an agreement that is equally beneficial to everyone.

All parties come out of a negotiation with a workable agreement that benefits everyone involved. If your current negotiation strategies are not working for you, change your strategy. Think win/win and let the other person know about it right away. Be up front and explain your strategy. Talk about the benefits to both of you from this approach. This type of negotiation will produce a satisfactory agreement for both sides, and in a style that will leave both parties satisfied. Win/Win Negotiation involves these seven steps:
1. UNDERSTANDING PEOPLE – People negotiate with people. Getting their agreement that a Win/Win approach is fair and good for business over the long haul.

2. UNDERSTANDING THEIR INTERESTS AND ISSUES – Both business and personal. Know what the win/win looks like. Determine how you can satisfy what they are looking for and what you are looking for.

3. EXPLORING AND INVENTING OPTIONS – Brainstorm several options that make sense.

4. KNOW WHAT YOU WANT – Know what you want the deal to look like after the negotiation. Specifically, what will make this a fair arrangement for you?

5. KNOW WHAT THEY WANT – Interview all the key people involved. Make sure you understand what they want.

6. DO YOUR HOMEWORK – Understand their motivations style and adapt your style to address these motivations. Research answers to the important issues involved in this negotiation in advance. Consider the important questions and concerns everyone will have.

7. FINDING MUTUAL SATISFACTION – What do the parties want? What constitutes a win for each person involved?

So the best negotiating technique is a Win/Win approach. It is based on collaboration and refers to partnering with the customer, so that the end result is a satisfactory outcome (a win/win) for both sides. Collaboration allows both sides to come out as winners. Never underestimate the importance of preparing to negotiate. Pre-Negotiating Planning allows salespeople to understand the prospect’s needs and motivation and provides the essential elements to make the win-win a reality.

About the author – Len D’Innocenzo is a Co-founder of Corporate Sales Coaches, a US based provider of cutting edge performance development programs for over 20 years. Northbound Learning has an exclusive Canadian partnership with Corporate Sales Coaches.